IRS Gives 3-Year Extension on Secure, CARES Act Amendments

The IRS provides “relief to benefit plans from having to include new RMD language until 2025,” Mazawey told ThinkAdvisor Tuesday in an interview.

The deadline to amend for the RMD provision generally is Dec. 31, 2025 for non-governmental plans and, for governmental plans, “90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after Dec. 31, 2023 (subject to the special rule for 457(b) plans),” Groom explains in its alert.

Section 601 of the SECURE Act, Groom states, generally provides that plan amendments must be adopted by the end of the 2022 plan year or such later date as the Treasury Department prescribes.

The deadline for amendments under the SECURE Act, as explained by Groom, are:

• For non-governmental qualified and 403(b) plans, the amendment deadline is Dec. 31, 2025.
• For governmental qualified and 403(b) plans, the amendment deadline is 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after Dec. 31, 2023.
• For governmental 457(b) plans, the amendment deadline is: the later of 90 days after the close of the third regular legislative session of the legislative body with the authority to amend the plan that begins after Dec. 31, 2023, or the first day of the first plan year beginning more than 180 days after the date of notification by the IRS that the plan was administered inconsistent with Code section 457(b) (if applicable).

Unfortunately, Groom states, the IRS notice “does not address an extension for coronavirus-related distributions and loans, and as these provisions are optional and we do not expect any future guidance, presumably they will not be reflected on a required amendments list.”